HEG Ltd

- There is no mention of any current or planned new fundraising through debt or equity in the provided document. - The company is long-term debt-free with a treasury size of nearly INR 917 crores as of June 30, 2024. - Recent investments include INR 1,200 crores towards plant expansion and INR 60 crores spent on the graphite anode project capex so far. - The company is focused on optimizing operations and negotiating power costs rather than seeking new capital. - No announcements or discussions about raising fresh equity or debt were made during the conference call.

- INR 60 crores spent so far on graphite anode plant, primarily on land, leveling, boundary walls, environmental approvals, and preoperative expenses. - Graphite anode plant commissioning target pushed to FY 26-27 due to delays in battery plants and recent drop in lithium-ion battery prices. - Company ready with machinery orders, civil designs, and sales engineering drawings; construction can start promptly upon approval. - Focus on negotiating lower power costs, which make up 30-35% of variable cost for the graphite anode project. - Strategic investment in GrafTech (a U.S.-based company) to leverage their backward-integrated graphite business, seen as a unique opportunity despite short-term stock price volatility. - Continuing investment and focus on HEG Greentech Limited to target future projects involving both battery solutions and pumped hydro energy storage systems.

- HEG expects demand for graphite electrodes to increase substantially, driven by decarbonization and global steel capacity expansion. - Over 100 million tons of new electric arc furnace capacity have been announced worldwide, excluding China, with about 64 million tons operational by 2027. - The company’s expanded capacity from 80,000 to 100,000 tons positions it well to meet anticipated demand growth. - HEG projects electrode demand growth of 100,000 to 125,000 tons in the next 3 years. - Graphite anode demand in India could reach 80,000 to 130,000 tons by 2030, driven by battery manufacturing targets of 80-130 GWh. - The anode plant commissioning was delayed by 1-2 quarters due to battery price fluctuations but is ready to start construction. - Despite near-term margin pressures, HEG remains optimistic about mid-to-long-term growth in sales and volumes, expecting a market recovery from 2025 onwards.

- HEG expects demand recovery and growth from 2025 onwards, driven by expansion of electric arc furnace (EAF) steel capacities globally, especially due to decarbonization efforts. - The company's expanded graphite electrode capacity of 100,000 tons makes it the largest single-location plant, enabling cost advantages over peers. - Current margins are under pressure due to reduced demand and narrowed spreads between electrode and needle coke prices, but management anticipates market improvements within 2-4 quarters. - Battery anode business (graphite anode plant) commissioning has been delayed by 1-2 quarters to align with demand, with expected capacity ramp-up around FY26-27. - Power price reductions and securing green power supply are key focus areas to improve operating margins. - Investment in GrafTech is viewed as a long-term positive for earnings with expected price recovery. - Overall, HEG is optimistic about mid-to-long-term value creation as market conditions improve and new businesses contribute.

The transcript does not specifically mention the current or expected order book or pending orders for HEG Limited. However, the following related points can be noted: - HEG Greentech Limited is focusing on bidding for projects involving both pumped hydro and energy storage systems, putting them in a comfortable position for future project opportunities. - There is strong business development activity for Battery Energy Storage Systems (BESS), both in India and internationally, expected to contribute significantly to the new Greentech business. - Tenders from SECI and others are ongoing for hybrid solar, wind, and BESS systems, indicating potential upcoming orders. - The company is ready to capitalize on growing demand in graphite anode and pumped hydro markets but is monitoring market conditions and government approvals carefully. No explicit quantification of orderbook or pending orders is provided in the transcript.